In this legal tip, lawyer Jonathan Stasche from the law firm caspers mock in Koblenz provides a structured overview of the key aspects of inheritance tax. The aim is to explain basic questions about tax liability, allowances, and tax calculation in an understandable way and to clarify typical contexts.
First, it explains who is generally required to pay inheritance tax. Any person who acquires assets from another person as a result of inheritance is liable for tax. It is irrelevant whether the acquisition of assets takes place by way of statutory succession, through a bequest, or through other inheritance arrangements.
A key aspect of inheritance tax is personal allowances. Tax is only payable if the value of the acquired assets exceeds the applicable allowance. These allowances are based on the relationship between the deceased and the acquirer and are intended to reduce the tax burden on close relatives.
This article provides examples of the most important allowances. Spouses can acquire assets up to a value of €500,000 tax-free. An allowance of €400,000 applies to children and an allowance of €200,000 to grandchildren. Siblings and all other acquirers have a significantly lower allowance of €20,000.
In addition, the article explains how inheritance tax is calculated. Both the tax class and the value of the taxable acquisition are decisive factors here. The tax class is also based on the family relationship between the deceased and the acquirer.
Inheritance tax law distinguishes between three tax classes. Tax class I includes spouses, children, and grandchildren, among others. Siblings, nephews, and nieces belong to tax class II, while all other beneficiaries are assigned to tax class III. As the tax class increases and the value of the acquisition rises, the applicable tax rate also increases.
Depending on the individual case, the tax rate can range from 7 percent to 50 percent. To illustrate this, the video shows an example in which a child inherits real estate and securities worth €550,000. After deducting the personal allowance of €400,000, a taxable acquisition of €150,000 remains, which is taxable at 11 percent in tax class I. This results in an inheritance tax of €16,500.
Finally, the legal tip points out that there are numerous exceptions and tax exemptions in inheritance tax law. These include, in particular, benefits for owner-occupied real estate, which can be transferred tax-free or with tax advantages under certain conditions.
The law firm caspers mock and its team offer support in the legal and tax structuring of inheritance cases. The aim of the consultation is to avoid or reduce existing tax burdens in a legally compliant manner and to develop individual solutions.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.